This results in an increase in demand for goods and services which helps in reviving the economy. Here, the government incurs the excessive expenditure to improve the employment rate. Especially helpful at times of recession, a deficit budget helps generate additional demand and boost the rate of economic growth. This type of budget is best suited for developing economies, such as India. Such a budget can be implemented at times of inflation to reduce aggregate demand.Ī government budget is said to be a deficit budget if the estimated government expenditure exceeds the expected government revenue in a particular financial year. A surplus budget denotes the financial affluence of a country. This means that the government’s earnings from taxes levied are greater than the amount the government spends on public welfare. On the other side, environmental protection continues to receive limited funding, 0.06% of total budgeted expenditure in 2019 (0.08% in 2018).A government budget is said to be a surplus budget if the expected government revenues exceed the estimated government expenditure in a particular financial year. The Maputo Declaration (2003) commits countries to allocate at least 10% of their annual budgets to agriculture. ✓ Agriculture, forestry, fishing and hunting will be allocated 0.93% of total budgeted expenditure for 2019, a notable expansion compared to 0.40% received in the state budget 2018. Finally, social protection received 4.96% of total budgeted expenditure, below the 6.4% share of previous year. The Abuja Declaration (2001) commits countries to allocate at least 15% of their annual budgets to health. The state budget 2019 allocates to health 5.7% of total budgeted expenditure, up from 4% share received in 2018. The Education 2030 Framework for Action recommends spend between 15% and 20% of total government expenditure on education. The Dakar Framework for Action (2000) commits countries to allocate at least 20% of their annual budgets to education. ✓ It is noteworthy that education received 6.04% of total budgeted expenditure for 2019, above the 5.78% share received in 2018. Moreover, it shows the link with the indicators of SDG 1 and the Multidimensional Poverty Index (MPI). The link between budgeting and planning is key to move forward the NDP, the long-term development strategy Angola Vision 2025-2050 and the achievement of the SDGs. The note reveals the relation between the state budget 2019 and the National Development Plan 2018-2022 (NDP): 81 out of total 83 programmes of the NDP were budgeted. ✓ This technical note aims at presenting the key elements of the state budget 2019 with focus on critical sectors to end poverty and promote human development. ✓ Budgeted expenditure for subsidies was reduced from 2.3% of total budget for 2018, to 1.6% of total budget for 2019, with 1.3% of total budget allocated to subsidies to prices (AOA134.6 billion). Oil revenues are expected to account for 11.5% of GDP and 59.6% of fiscal revenues in 2019. On December 2018, total stock of public debt attained nearly AOA23 trillion, 85% of GDP. While budgeted expenditure on health and education increased, nearly half (51.2%) of total budget remained allocated to public debt operations, AOA5332 billion - up from AOA5073 billion of previous budget. Total budgeted expenditure for this year is AOA10,407 billion, +7.4% compared to 2018. ✓ In June 2019, the National Assembly approved the revised state budget law for 2019.
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